To
OMX The Nordic Exchange Copenhagen
Executive Board
Parallelvej 17
DK-2800 Kgs. Lyngby
www.rd.dk
Telephone +45 7012 5300
5 December 2007
Announcement number 57 - 2007
Auction of bond series 10S and 10Q
Realkredit Danmark holds an auction on mortgage covered bonds (SDRO) in series
10S and series 10Q.
The auction of 1-year mortgage covered bonds (SDRO) in series 10S and 10Q as
well as 3-year and 5-year mortgage covered bonds (SDRO) in series 10S will be
held in equal portions over five trading days from Monday, 10 December, through
Friday, 14 December 2007.
For the remaining securities identification codes in series 10S and 10Q, the
auction will be held on Friday, 14 December 2007.
Mortgage covered bonds (SDRO) to be issued by Realkredit Danmark to refinance
FlexLån® at 1 January 2008 will form the basis for the auction.
The final amount of bonds to be auctioned and the exact terms and conditions of
the auction are set out in the appendix to this announcement.
Any additional questions should be addressed to Senior Dealer Søren Gravgaard,
phone +45 45 13 20 19.
The Executive Board
Terms and conditions of Realkredit Danmark's auction to be held from
10 to 14 December 2007
Auction
The auction will take place at OMX The Nordic Exchange Copenhagen's
mortgage-issuing sub-market. The Dutch auction principle and hidden call method
will be used. Under the Dutch auction principle, all bids above the cut-off
prices will be settled in full at the cut-off prices.
For bids at the exact cut-off price, proportional allocation may be used. All
bids below the cut-off prices will not be settled. Hidden call means that the
bidders can only see their own bids, whereas the issuer can see all bids.
Decimal points
Investors may place their bids at prices with up to three decimal places for
1-year bonds maturing in 2009 in both the 10S and 10Q series.
For the rest of the securities identification codes offered, bids may contain
only two decimal places.
Bonds
Realkredit Danmark will put mortgage covered bonds (SDRO) in series 10S and
10Q, maturing from 2009 to 2013 on the auction.
Bids/settlement
The auction will be held with three cut off periods 11.00am, 12.30pm and
1.30pm. The cut off period for all 1-year mortgage covered bonds (SDRO) will be
11.00am on all auction days.
The IPMO is set to 10 minutes.
The following mortgage covered bonds (SDRO) will be offered until 11.00am for
settlement at 11.10am on the following dates:
Date DKK
4% 10S Amount DKK m. EUR
4% 10Q Amount EUR m.
10 December 2007 2009 16,720 2009 440
11 December 2007 2009 16,720 2009 440
12 December 2007 2009 16,720 2009 440
13 December 2007 2009 16,720 2009 440
14 December 2007 2009 16,720 2009 440
The following mortgage covered bonds (SDRO) will be offered until 12.30pm for
settlement at 12.40pm on the following dates:
Date DKK
4% 10S Amount DKK m. EUR
4% 10Q Amount EUR m.
10 December 2007 2011 2,650 -
2013 870 -
11 December 2007 2011 2,650 -
2013 870 -
12 December 2007 2011 2,650 -
2013 870 -
13 December 2007 2011 2,650 -
2013 870 -
14 December 2007 2011 2,650 2011 131
2013 870 2013 34
The following mortgage covered bonds (SDRO) will be offered until 1.30pm for
settlement at 1.40pm on the following date:
Date DKK
4% 10S Amount DKK m. EUR
4% 10Q Amount EUR m.
14 December 2007 2010 1,880 2010 23
2012 545 2012 11
Value date
2 January 2008.
Investors who have been allocated bonds in series 10S or 10Q will be offered by
Realkredit Danmark on all auction days to acquire the bonds with value date 3
days after the auction day instead of 2 January 2008.
However, it is a precondition that the bidder simultaneously will sell a
similar amount of mortgage bonds (RO) to Realkredit Danmark with maturity 1
January 2008 in the series 10D or series 10E.
Buyers wishing to do so must notify Realkredit Danmark upon the allocation of
bonds.
Participants
Bids will be accepted from all members with access to OMX The Nordic Exchange
Copenhagen's mortgage-issuing sub-market. (Orderbook-ID: ILS)
Other conditions
1. Realkredit Danmark is not under any obligation to sell the entire amount
announced at the auctions.
2. On each auction day, Realkredit Danmark will not trade in the securities
identification code or codes offered on the auction at the specific auction day
prior to the announcement the results of the auction. After the results have
been announced, Realkredit Danmark's sales will be made at prices only above
the cut-off price of each securities identification code.
